E-commerce players across Europe are closely monitoring the recent advertising shift by Chinese retail giant Temu, which abruptly halted its campaigns on Google Shopping in the US. The move, which began on 9 April and saw Temu's complete withdrawal by 12 April, coincided with US President Donald Trump's announcement of potential tariffs of up to 145% on Chinese imports.
Temu is known for its aggressive advertising budgets and competitive pricing strategies, which have driven up click prices in many markets. The company's sudden exit from the US market has led to concerns among European e-retailers that these resources might now be redirected towards Europe, potentially increasing advertising costs and intensifying market pressure.
In Sweden and the Nordics, however, the situation appears stable. According to Google Ads expert Karl Lindberg, current advertising data remains "relatively unchanged" over the past fortnight. He noted that while Temu remains a formidable competitor in terms of bidding on Google Shopping, there is no evidence of "increased aggressiveness" in this region at present.
Nonetheless, Lindberg cautions against complacency, citing reports of rising visibility for Temu in markets like France. He emphasised the importance for e-retailers to remain alert and responsive: 'It is crucial for e-commerce businesses to react swiftly to trends and data – whether that means seizing new opportunities or pulling back where returns are low.'
While it remains unclear whether Temu's US exit is a short-term response to tariffs or part of a longer-term strategy to prioritise Europe, industry experts agree that vigilance will be key. The situation continues to evolve, with potential implications for advertising costs and competitive dynamics across the continent.
Source: www.ehandel.se